Name and Location
Lerala diamond mine restart and plant recommissioning project, Botswana.

Client
Kimberley Diamonds Limited (KDL).

Project Description
The Lerala mine and processing plant were placed on care and maintenance in July 2012.

The mine has a current resource of about 10.3-million tonnes at an average grade of 31.5 ct per hundred tonnes, equating to an estimated 3.3-million carats.

The project involves modifications to the Lerala processing plant to enable it to operate more effectively and reliably treat 200 t/h.

Once in production, Lerala has a current forecast life-of-mine of seven years, treating 1.4-million tonnes of ore a year and producing an average of 357 000 ct/y.

Net Present Value/Internal Rate of Return
Not stated.

Value
KDL has approved A$14.6-million for upfront capital items required to bring the plant and mine to a state of readiness.

Duration
KDL intends to start mining at Lerala in February 2016 and to ramp up the plant commissioning and processing of existing run-of-mine stockpiles in February 2016.

If the timing of the recommissioning remains on schedule, then KDL will see the first diamond sale held in March 2016.

Latest Developments
The overall project schedule for the Lerala diamond mine remains on schedule, with diamond production to start in February next year.

The company has said that, while it will endeavour to source and employ local personnel, the Lerala mine will likely require a number of skilled expatriates. As a result, a permanent accommodation camp will need to be built as part of the refurbishment project.

In July, Kimberley awarded a lump sum turnkey contract for the plant modification work at Lerala, which would include the refurbishment of existing camp facilities.

Consulmet will be paid about A$9.83-million to undertake the plant modifications, which are scheduled for completion by February.

Key Contracts and Suppliers
Consulmet (plant modifications).

On Budget and on Time?
Not stated.

Contact Details for Project Information
KDL, tel + 61 2 8243 7500.